Real estate agents, no doubt, play a crucial role in a successful real estate transaction. While the real estate industry is teeming with top-notch professional agents, there are still those that are, well, not at par. It is important to screen them well and do your research to find that one that fits.
Here are some things that an agent may not tell you but are essential for you to know about before you consider hiring a real estate professional.
The Commission May Be Negotiable
In general, agents will tell you that their commission is 6 percent and that it is not negotiable, but the truth is, it is negotiable. Therefore, it is important to ask upfront about commission rates and negotiate a rate that works for both of you before you move forward with the transaction.
Typically, the commission is split between the listing agent and the buyer's agent. So, it is also crucial for the buyer to know this as well, as their agent may steer them away from the property that is right for them in favor of the one which could give the agent the higher compensation.
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Some Will Work for Both Buyer and Seller
Some states allow real-estate professionals to work for both parties in a real estate transaction, or what is called dual agency. Such an arrangement helps speed up the process as either party only needs to talk to the same agent.
While it can be convenient for the seller, buyer, and the agent, it can be difficult for the agent to balance the interest of both parties. Remember that you should be hiring an agent who will only have your best interest in mind.
Chances Are, They Don't Know Your Home's Value
Agents will most likely get an estimate of a home's value based on recent sales of comparable homes, which is not enough to really get an accurate estimate. To get a more realistic valuation, you may use an online tool, FHFA house price index or HPI calculator, or hire a professional real estate appraiser.
An Open House May Serve the Agent's Interest More Than Yours
Many listing agents will tell you that having an open house is an important step to selling your home. However, a 2019 NAR survey shows that only six percent of buyers found the house they purchased through an open house/yard sign.
An open house is actually more advantageous to the listing agent as it provides the agent with an opportunity to meet more prospective clients. As mentioned in a WiseBread article, for every five or six people who enter the house, only one may actually like the house. But that's not a problem with the listing agent as he still has other properties to show to the other four or five people.
You May Get More by Selling the House Yourself
If you have the skills, time, and energy to market your house and go through the entire process without the help of an agent, then you can put your house on the market as "For Sale By Owner." Selling your home FSBO could possibly get more money in your pocket since you won't have to pay the agent's commission.
Be mindful that your property may spend more time on the market than having it listed with an agent.
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